Opened in Asia at Y81.32 after a recovery yesterday from lows in NY of Y81.01. The pair headed higher as the Nikkei pushed up over 1% in early trading on the back of rises in US stocks and strong Apple earnings but the move stalled into offers above Y81.50 from exporters, models and macro funds with a day’s high of Y81.56. Weak dollar sentiment pressed the pair lower to Y81.20 in early European dealings, before dip buying emerged to lift off lows. Sharp falls in cable following weak UK GDP data dragged the dollar to fresh intraday lows Y81.11, before making an attempted recovery to Y81.20 and trade heavy into NY. Stops flushed in EUR/USD gave the cross an early boost to print highs of Y107.61, before running into Asian sovereign supply and easing to Y107.45. Rate made an attempted recovery ahead of the earlier mentioned UK GDP data, spiking lower on release to Y107.12. Profit take demand lifted the cross back to Y107.30 and settle in a tight trading range.
EasyForexNews Research Team